Robert J. Boumis  |  September 2, 2014

Category: Consumer News

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DebtA debt collection lawsuit is currently working its way through the U.S. Court of Appeals over debt collection practices. This case hinges on details that could set legal precedent for other debt collection lawsuits in the future.

In the debt collection lawsuit, a debt collection company called Williams, Zinman & Parham, P.C. (WZP) is being sued by an individual named Maria Hernandez. In her debt collection lawsuit, Hernandez alleges that WZP has violated federal law regarding debt collection by not adequately informing her of her rights under federal debt collection laws.

In the United States, the Fair Debt Collection Practices Act, or FDCPA, protects consumers from debt collector harassment by spelling out regulations on what debt collectors can and cannot do. This law was designed to regulate the actions of debt collectors, determining what they can tell third parties, what they can report to credit bureaus, and what methods they can use to collect a debt.

The Hernandez debt collection lawsuit alleges that the company has not followed the FDCPA, and failed to adequately inform her of her rights under the act to request validation of the debt, or proof that the debt is owed. This is a stated provision of the Fair Debt Collection Practices Act, but WZP asserts that its obligation was covered by a third party.

The debt WZP was seeking was originally sought by another debt collection agency. This is a critical point in the Hernandez debt collection lawsuit. While the initial debt collecting agency did send Hernandez a letter detailing her rights, WZP failed to do so when they assumed control of the debt collecting.

In its initial letter, they made no statement that Hernandez could request, in writing, validation of the debt she was facing within five days of receiving the first notice of her debt. According to her debt collection lawsuit, WZP has not dispute this fact. Instead, WZP has argued that they were not obligated to make such a statement, as the first debt collection company that contacted Hernandez made the required statements.

According to the text of Hernandez’s debt collection lawsuit, courts on the level of the U.S. Court of Appeals have not weighed in on this key point in the FDCPA. However, her case does cite several similar precedents that could possibly be applied to this case. The ruling of the court at this level could set precedent for similar cases and force debt collection agencies to change their practices to avoid running afoul of this provision of the FDCPA and facing similar court cases in the future.

The Debt Collection Lawsuit is formally titled Maria Hernandez v. Williams Zinman & Parham PC, on appeal from the U.S. District Court for the District of Phoenix, Case No. 14-15672, in the U.S. Court of Appeals for the Ninth Circuit.

Join a Free Unfair Debt Collection Class Action Lawsuit Investigation

If a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

 

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